8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 1/30
Project ManagementPublic vs Private
Project Management
Bucharest, 30 October 2007
Alberto Gomez
MBA, Key Expert EU 2007 PHARE ProjectRomania
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 2/30
Project Cycle Management (PCM),
that includes the Logical Framework Matrix
(LFM), is the Methodology used by the European
Commission (EC) to design , execute and evaluate
economic , social and regional Programmes andProjects . It is similar to the one used by all major
Multilateral Institutions (UN,
WB, IDB, etc.)
The World Bank
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 3/30
Overview of EC Project Cycle Management
What is a project?
ISO/PMI: “A series of activities aimed at achieving one or
more specific objectives within a defined time frame andwith a defined budget”
EC: “A project is an instrument which is used to contribute to
the achievement of a larger goal (e.g. a programme), whichwill in its turn supports the implementation of a broader
policy”
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 4/30
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 5/30
The essential PCM principles are:
use of Logical Framework Approach (LFA) to
formulate the project and analyse the problems;
production of good quality key documents ineach phase to ensure structured and well-
informed decision making; consulting and involving key stakeholders as
much as possible.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 6/30
The main tools supporting ProjectCycle Management:
The Project Fiche - or Terms of reference;
The Project Logframe Matrix- especially to help
assessing what has been achieved against plan;Monitoring reports;Evaluation reports- intermediate and final.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 7/30
The main tools supporting ProjectCycle Management:
The Project Fiche - or Terms of reference;
The Project Logframe Matrix- especially to help
assessing what has been achieved against plan;Monitoring reports;Evaluation reports- intermediate and final.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 8/30
Key documents in the PCM:
Programming
Identification
FormulationImplementation
Evaluation
Programming
Identification
FormulationImplementation
Evaluation
Decisions to take Documents to produce
Country
Strategy Paper Priority areas,
Sectors,
timetable
Which options
to study
further
Pre feasibility
studyProject
Identification
Sheet
Feasibility
study
Financial
Proposal
Decisionon funding
Financing
Agreement
Progress
& Monitoring
Report
Decision whether to
continue as plannedor reorient the project
Evaluation
Report
Decision
on how to use resultsfor planning
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 9/30
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 10/30
Stakeholders Analysis Matrix
Stakeholders and
basic
characteristics
Interests and how
affected by the
problems
Capacity and
motivation to bring
about change
Possible action to
address
stakeholders
interests
Stakeholder 1
Stakeholder 2
Stakeholder ….
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 11/30
Problem Analysis
STEP 1: brainstorm on problems considered to be a
priority by the stakeholders
STEP 2: select individual starter problem
STEP 3: identify related problems to the starter problem
STEP 4: begin to establish a cause-effect relationship
STEP 5: all other problems are sorted in the same way(cause-effect)
STEP 6: problems are connected with cause-effect arrows
showing the links
STEP 7: revise the diagram to find out if some problems
have not been identifiedSTEP 8: the diagram is revised accordingly and
distributed
A different, yet similar, method for Problem analysis is the
“Fishbone diagramme”, or Ishikawa Root-cause analysis
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 12/30
Analysis of objectives
SMEs are able to better
access int. markets
SMEs build Int.
partnerships
SMEs increase int.
exposure
SME develop Export
Prom. Strategies
SMEs acquire
specific skills
SMEs benefit of ad hoc
fundsSMEs access advisory
services
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 13/30
Analysis of strategies/options1. if all the problems have to be faced or only a selection
of them;
2. positive opportunities on which we can build on (fromSWOT);
3. combination of interventions which is likely to better
achieve the results and ensure sustainability;
4. which option is best promoting local ownership;
5. which is the most cost effective option;6. which option best impact on the needs of the
poor/most vulnerable groups
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 14/30
Logical Framework Matrix
ProjectDescription Indicators Sources of
verificationAssumptions
Overall objective: the
project’s contribution
to policy or programme
objectives (impact)
Purpose (often calledspecific objectives) –
direct benefits to the
target groups
Results (often called
outputs) – tangible
products or services
delivered by the project
Activities (sometimes
referred to Inputs) –
which have to be
undertaken to deliver
the desired results
How the Overall
Objective has to be
measured including
Quantity, Quality, and
Time?
How the Purpose hasto be measured
including Quantity,
Quality, and Time?
How the Results have
to be measured
including Quantity,
Quality, and Time?
How will the
information be
collected, when and by
whom?
Same as above
Same as above
What are general
Assumptions?
or major risks?
If the purpose isachieved, what
assumptions must hold
true to achieve the
Overall Objective?
If results are achieved,
what assumptions
must hold true to
achieve the Purpose?
If activities are
completed, what
assumptions must hold
true to deliver the
Results?
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 15/30
I D N o m e a t t i v i t à
22 C . In s t i t u t i o n B u i ld i n g f o r R D P2
22 E s t a b l is h a S t r a t e g y C o m m i t t e e i n e a c h r e g i o n
22 I d e n t i fy a n d m e e t w i th m e m b e r s o f t h e S C
22 D e v e l o p m o d a l it ie s & m e c h a n i s m f o r t h e o p e r a t i o n o f t h e S C
22 S u b m i t S C m e m b e r s h ip t o E C D e l e g a t io n a n d P r o j e c t P a r t n e r s
22 E s t a b l is h W o r k i n g G r o u p s i n e a c h r e g i o n
22 D e f in e t h e m a t ic W o r k i n g G r o u p s
22 I d e n t i fy m e m b e r s o f t h e W o r k i n g G r o u p s
22 D e v e l o p m e c h a n i s m a n d m o d a l it ie s f o r t h e o p e r a t i o n o f th e W G s
22 S u b m i t W G m e m b e r s h ip t o E C D e l e g a t io n a n d P r o je c t B e n e f i c i a r ie s
22 T r a in i n g o n R D P f o r b o t h S C a n d W G m e m b e r s
22 D e s i g n a n d a g r e e t ra i n i n g p r o g r a m m e o n R D P
22 S e l e c t p a r t i c ip a n t s
22 O r g a n i s e & d e l i v e r t r a i n i n g w o r k s h o p s i n R D P
22 E v a l u a t e t h e p e r fo r m a n c e & s u p p l e m e n t a r y t r a i n i n g s a s n e e d e d
22 A s s i s t r e g i o n a l o f fi c i a l s w i t h d r a f t in g R D s t r a t e g i e s
22 A s s i s t t o c a r r y o u t R e g i o n a l S o c i o - E c o n o m i c A n a l y s e s
22 A s s i s t t o s e t p r i o r i t i e s & d r a f t R D s t r a t e g i e s
22 A s s i s t t o f o r m u l a t e a c t i o n p l a n s f o r i m p l e m e n t a t i o n o f R D s t r a t e g i e s
22 F a c i l i t a te a c c e p t a n c e o f R D P s b y t h e C e n t r a l G o v e r n e m e n t
22 D e v e l o p & i m p l e m e n t M a r k e ti n g S t r a t e g y t o i m p l e m e n t R D P
R D A
R D A
/22 22
R D A
R D A
M G L A S O N D G F M A MG L A S O N D GF M A M G L A S O N D G F MA M G L A S O N D G F MA M G L A S O N D GF M A M G L A S O N D G F MA M G L A S O
2222 2222 2222 2222 2222 2222 2222
S T E P :2
L i s t m a i n a c t i v i t ie s
f r o mL o g f r a m e
S T E P :2B r e a k a c t i v i t ie s
I n t o t a s k s
S T E P :2
C l a r i fy s e q u e n c e &
d e p e n d e n c e
S T E P :2
E s t i m a t e s t a rt-up ,
D u r a t io n &
c o m p l e t i o n
S T E P :2
S u m m a r i s e
S c h e d u l in g o f
m a i n a c t i v i t ie s
S T E P :2
D e f in e m i le s t o n e s
S T E P , :22
D e f i n e e x p e r t i se
r e q u i r e d & a l lo c a t e
t a s k s
S T E P :2
C l a r i fy s e q u e n c e &
d e p e n d e n c e
S T E P :2
E s t i m a t e s t a rt-up ,
D u r a t io n &
c o m p l e t i o n
S T E P :2
S u m m a r i s e
S c h e d u l in g o f
m a i n a c t i v i t ie s
S T E P :2
D e f in e m i le s t o n e s
S T E P , :22
D e f i n e e x p e r t i se
r e q u i r e d & a l lo c a t e
t a s k s
Activity Schedule
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 16/30
Resource and cost schedule
ACTIVITIES / INPUTS Unit Quantity per planning period
Cost per
unit
Funding
source Cost codes Cost per planning per iod
Project
Total
Annualrecurrent
costs
2st Q 2nd Q 2rd Q 2thQ Donor Govt 2st Q 2nd Q 2rd Q 2thQ
C . Establish WGs in each region22
Equipment
computers no. 2 2 2222 2222 2222 2222
fax, modem no. 2 222 222 222
furniture lump 2 2222 2222 2222
Salaries & allowances
office staff mm 2 2 2 2 222 222 222 222 222 2222 2222
counterparts mm 2 2 2 2 222 222 222 222 222 2222 2222
ETC
STEP 1:
Copy activities
from Activity Schedule
STEP 2:
Specify INPUTS STEP 3:
Put inputs into cost
categories
STEP 4:
Specify units
STEP 5:
Specify quantity
STEP 6:
Estimate unit cost
STEP 7:
Identify funding
source
STEP 8:
Allocate cost codes
STEP 9:
Schedule costs
STEP 10:
Calculate total
STEP 11:
Estimate recurrent
costs
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 17/30
Focus of the
analysis
Questions to
answer
Information
needed
Planned vs
actual
(efficiency)
Risk &
Assumptions
Design
(relevance)
Project results
(effectiveness)
Sustainability
Impact
Is the project doing what
was originally planned?
Activity schedule
Resource schedule
Logframe matrix
Project Reports
Interviews
Are the assumptions holding
true? Are new risks emerging? Risk matrix
Logframe matrix
Was the project design
relevant? Is it still relevant?
Logframe matrix
Stakeholders Analysis (etc LFA)
What difference is the
project making?
Logframe matrix, Project Reports
Interviews
Are the project purposes likely tobe sustainable?
Will the project impact on the
overall objective?
Logframe matrix
Monitoring
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 18/30
Focus of the
analysis
Questions to
answer
Information
needed
Relevance
Efficiency
Effectiveness
Impact
Sustainability
Is the project design relevant?Logframe matrix
Stakeholders Analysis, Problem
Analysis, Analysis of Objectives,
Analysis of Strategies (if available)
Monitoring Reports
How well the various activities
transformed the available resources
into the intended results?
Logframe matrix
How far the project’s results were used
or their potential benefits were
realised?
Logframe matrix
To what extent the benefits
received by the target
beneficiaries have had a wider
overall effect?
Logframe matrix
Interviews
Are the positive outcomes of the
project at purpose level likely to
continue after the external funding?Interviews
Evaluation
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 19/30
Eco-Fin Analysis
Economic and Financial Analysis
• Economic and Financial Analysis (EcoFin Analysis) is one of the relevant
forms of analysis of a project among others (institutional, environmental,
political, social, gender, etc.). It is not compulsory as is the LogFrame
matrix and used by EuropeAid mostly in developing regions, not so much
transition or mid-level countries or regions.
• Financial Analysis focuses on the point of view of one entity or group of
institutions (beneficiary, target group, etc.). This is done through Cost-
benefit analysis or Cost-effectiveness analysis.
• Economic Analysis on the point of view of society at large... or at leastthe wider environment of the project. This is done through the Effects
Method or the Shadow-pricing method.
• The philosophy of Eco-Fin analysis is to measure the incremental value
of the “with-project” situation and the “without-project” situation.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 20/30
International Private Project Management
Techniques
• International (public and especially private sector) standards of ProjectManagement are:
• ISO 10,006: 2003- “Quality Management in projects”, 20 pages of text, is a very general standard, only covers quality area, see
www.iso.org .
• PMBOK (Project Management Body of Knowledge or PMBOK) of the Project Management Institute (PMI), 425 pages its 3rd - 2004edition. US-based professional association, 170,000 members
worldwide and 100 chapters, see www.pmi.org. Certifies projectprofessionals as PMPs .
• IPMA , www.ipma.ch , Prince 2 www.prince2.com , Ten Step ,www.tenstep.com ,etc
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 21/30
Key documents are the Charter, the Scope (similar to
terms of reference) and the Project Plan
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 22/30
Comparison Public vs Private PM
• It is difficult to compare PCM with the International ProjectManagement Standards; such as PMBOK, the I IPMA,ISO 10,006- Project Quality , the British Prince 2, or other private methodologies (Ten Step, etc)
.• The origin, vocabulary, areas of knowledge, tools
,sections ,procedures and other general aspects that arevery different among standards
• Nevertheless , a brief comparison will help us to better understand the Key different Methodological aspects on how to manage Public International Projects vs Privatefunded ones.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 23/30
Stakeholders analysis in Private PM
• In private PMI standards there is no specific way
to analyze the stakeholders. There is no
template or specific technique recommended ,
although the need to do so is mentioned .
• Neither ISO 10.006 nor Prince2 specifically
mention the stakeholder analysis nor the method
to do so.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 24/30
Problem Analysis and Objectives in Private PM
• The Problems referred to in the PCM are not on the ProjectManagement , but on the beneficiaries, and other Projectstakeholders, or on the surrounding social ,economicenvironment which the project wants to solve or tackle
• In the International PM Standards these problems have their definition and scope and strategies in their different sections inthe Project cycle of the PMBoK . Scope definition andstrategies, and product definition and analysis , are also treatedin the ISO, IPMA (ICB Level4) and Prince 2 ones.
• But a difference exists with the International Standards ,sincenone establishes a specific tool or methodology to carry out theproblem or objectives analysis of the target group, as the PCMdoes (Logical Framework Approach, LFA)
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 25/30
Monitoring and Evaluation in Private PM
• PMBoK deals with monitoring and evaluation ,but it does notdifferentiate specifically between Monitoring (integrated changecontrol) and Evaluation (a project snapshot by an outsideobserver).
• IPMA covers these two elements in PM General Element- 27
• ISO 10.006 deals marginally about them in sub-clause 8.3, butdoes not differentiate between permanent monitoring and static
evaluation.
• Prince2 covers the issue about project control and processevaluation ,not about the actual results evaluation
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 26/30
Ecofin in private PM
• Economic and Financial Analysis (Eco-Fin): PMBOK
mentions the feasibility study in the chapter : Project phase andProduct life cycle, but not the type of analysis to carry out
• IPMA ICB has the PM Content Element 3 – Programme and Project
Portfolio, but its neither the economic justification , not its techniqueare mentioned
• ISO 10.006 does not deal with the Economic and Financial justification , or economic analysis at all.
• Prince 2 talks about the “Business Case” as a prerequisite to approvethe project, therefore it is part of the process SU 4, as for projectbrief.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 27/30
Conclusions
• The different objectives of Public and Private PM Projects andProgrammes , determine the emphasis in the “Methodology”.While in International PM ,there are some tools that areobligatory ,in PM Private Methodologies the standards are
more varied and flexible. But certainly they are complementaryand useful.
• Some of the tools and templates used in Private PM
methodologies, are very useful and to a certain extent moredetailed than the tools necessary to manage a Public Project. And that is positive ,since the a Manager has to use those toolsthat in her/his mind are more appropriate to achieve the Projectdeliverables.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 28/30
Conclusions
• There some areas that in the PCM are not covered in depth: it isthe human resources, quality ,or risk and alternative strategiesduring the actual problem.
• PCM does not go very deep in time management , or criticalpath, network diagram , or project management office ,PMO .Which is necessary in large and complex projects.
• A important aspect of PCM is the fact managers do not deal just
with the quantitative issues , but with people perceptions of varied stakeholders with sometimes, different interests andagendas.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 29/30
Conclusions
• A Methodological comparison shows that PCM manages the
Project Cycle (design ,plan .execution , monitoring, evaluation,
budgeting and indicators) very well, compared with other Private
methods such as PMBOK, or IPMA-ICB, ISO 10,006,or Prince2 .
•The stakeholders, Contracting institutions, implementing institutionsand beneficiaries issue ,which is more complex in International PM
is also a key difference. Experience in International PM and people
management, is a good help for that.
•The Private PM methodologies deal with some other areas ,such ashuman resources, team management, quality and risk , and complex
and long calendars in more detail. And they have a technical focus
principally.
8/4/2019 Project Cycle Management Presen CODECS ROMANIA Private Public Oct 07
http://slidepdf.com/reader/full/project-cycle-management-presen-codecs-romania-private-public-oct-07 30/30
1. The right people
2. The right skills
3. The right motivation/incentives4. The right business environment
5. The right leadership
Practice makes perfection !!!!
Multumesc !